Moves by international payments firm Wise to acquire a UK banking licence would represent a further narrowing of the gap between the services offered by traditional banks and fintechs and “a vote of confidence” in the UK’s regulatory framework, analysts say.
The London-based fintech is said to be considering a full UK banking licence, according to a report by The Times, after voting in July to move its primary listing from London to the US.
The fintech’s reported exploration of such a licence is indicative of a wider trend that suggests “competition for traditional banks is on the horizon”, said Elina Rayberg, principal at Valar Ventures, which made early investments in Wise.
“First, it is an opportunity to diversify its offerings and expand into extremely lucrative services. Second, it reduces the current reliance Wise has on traditional banks through direct access to payment infrastructure,” she said.
Wise currently operates under an electronic money licence in its home market of the UK and has reportedly begun early-stage discussions with large financial services firms to advise on the matter. At the same time, the firm is expanding its newly established UK-based compliance monitoring and testing team.
It is understood that no formal application has yet been made to the Financial Conduct Authority. Wise declined to comment.
Founded in 2011 as TransferWise, Wise has grown into a fintech heavyweight managing multi‑currency accounts and international transfers across more than 160 countries.
The payments firm reported a pre‑tax profit of £565mn in its 2025 annual report and has 15.4mn customers. A banking licence would give Wise options to significantly expand its product offerings to its user base.
“While most neobanks started out as a single product, they are now looking to build complete financial services ecosystems for their customers,” said Nick Raper, a managing director at Alvarez & Marsal.
“[Wise] are getting more traction with consumer growth, so they may look to introduce credit cards for consumers which can generate higher income than the current debit card offering.”
The company’s plans follow its June application to the US Office of the Comptroller of the Currency to operate as a non-depository trust bank.
“We are witnessing a fascinating evolution where fintech firms are transforming into fully fledged financial service providers,” said Diego Ballon Ossio, a partner at law firm Clifford Chance, noting Wise’s reported move as a “significant vote of confidence in the regulatory framework of the UK”.
The gap between the services offered by traditional banks and fintech firms will continue to narrow, he added, making their offerings “increasingly indistinguishable from one another”.
While players such as Revolut also aim for a full UK banking licence, others are taking a partnership approach.
“We are also seeing partnerships between fintechs and bank partners to enable them to expand their product offering,” Raper said, noting fintechs Tide and Capital on Tap who offer clients savings and deposit accounts through a partnership with ClearBank.
“This partnerships approach is easier for fintechs to get to market, rather than going down the full banking licence route.”
The high growth in balances relative to customer numbers shows UK consumers and small firms are “more willing” to leave balances sitting with Wise than they have been in the past, indicating trust in fintechs is continuing to grow, Raper said.
Wise could look to “better monetise” its customer balances — which rose 29 per cent year on year — with new deposit and lending products, he added, pointing to reward- or travel-focused card propositions with insurance or other travel benefits, as examples.
Its customer numbers grew more than 20 per cent in the 12 months up to June 2025, with personal customers rising 22 per cent and business customers up 11 per cent.
“As yet, fintechs have for the most part sat on the periphery, content with their piece of the pie; current indications suggest that is changing,” said Rayberg.
“All of this could demonstrate that real competition for traditional banks is on the horizon, as non-bank firms leverage technology and customer reach to expand into regulated banking activities.”